US vows to sign new bilateral trade agreements

U.S. Secretary of State Marco Rubio said in an interview with CBS on Sunday (local time) that the U.S. will impose “reciprocal tariffs” on trade relations with partners around the world, to take effect next month and then conclude a “new trade agreement” through bilateral negotiations. This action raises the possibility of the U.S. demanding to revise or terminate the current South Korea-U.S. Free Trade Agreement (FTA) and conclude a new trade agreement.

“From a new baseline of fairness and reciprocity, we will potentially engage in bilateral negotiations with countries around the world on new trade arrangements that make sense for both sides,” said Secretary Rubio. He cited the unfairness of the existing trade order as the background for this change.

“President Trump rightfully believes that the balance of global trade is completely off gilt-kilter. We have allowed countries to treat us unfairly in global trade, much of it during the Cold War because we wanted them to be rich and prosperous because they were our allies in the Cold War, but now that has to change. So what the president is saying is two things,” said Secretary Rubio. “Number one, we need critical industries such as aluminum, steel, semiconductors, and automobile manufacturing to stay in the U.S. The second is global, and that is, we are going to put tariffs on countries reciprocal to what they impose on us. I understand why these countries don't like it, because the status quo of trade is good for them. We are going to set a new status quo.”


Woo-Sun Lim imsun@donga.com